A)
Therefore Variance is 9.44%
Standard Deviation is 3.072%
B)
C) There is more probability for the return of asset to be more than expected returns (i.e., 8.6%) hence the asset is a less risky asset.
Help 4. What is the expected return on an IBM bond if the return is 3%...
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4. What is the expected return on an IBM bond if the return is 3% one fifth of the time, 10% two fifths of the time, 12% one fifth of the time, and 8% the rest of the time? Rexpected - E Priori Variance ? Probabilitystate (Returnstatei - Rexpected) Standard Deviation = =yo a. Estimate the Variance and Standard Deviation (Just fill in the table below). REP R -Rexpected (R-Remete) (R- TOTAL: VARIANCE STANDARD DEVIATION b. Determine the ranges...
Asset A has an expected return of 15% and Asset B has an expected return of 12%. Based on a probability distribution, the standard deviation for Asset A is 10% and the standard deviation for Asset B is 5%. a.) Based only on the standard deviation, which investment is less risky? Discuss your reasons for your selection including why you feel that asset is less risky. b.) Calculate the coefficient of variation for each asset and post your answers. Based...
issue on an individual asset - what is the expected return,
variance and standard deviation of asset A only
I WA TISK and fetui11 man those that are provided in the article. The table below gives information on three risky assets: A, B, and C. Correlations Asset Expected return Standard Deviation of the Return B C 0.4 0.15 11.5 23 0.25 B 14 43 0.25 1 " CI 18 58 0.4 0.15 There is also a risk-free asset F whose...
Help please
7. Calculate the Expected Return and Standard Deviation of the individual asset A and B presented below. ASSET A State Pr State Return in State Pr R(A) -15 % Pr*R Deviation Deviation Squared Deviation Sq *Pr 1 0.4 2 0.6 5% E(R)= Variance Asset A- sd asset A ASSET B State Pr State Return in State Pr*R Deviation Deviation Squared Deviation Sq *Pr State R(B) Pr 25% 0.4 1 15% 0.6 2 Variance Asset B= E(R) sd Asset...
10.1 A. Calculate the mean and standard deviation of the following securities’ returns: Year Computroids Inc. Blazers Inc. 1 10% 5% 2 5% 6% 3 –3% 7% 4 12% 8% 5 10% 9% B. Assuming these observations are drawn from a normally distributed probability space, we know that about 68% of values drawn from a normal distribution are within one standard deviation away from the mean or expected return; about 95% of the values are within two standard deviations; and...
Expected return and standard deviation Use the following information to answer the questions: a. What is the expected retun of each asset? b. What is the variance and the standard deviation of each asset? c. What is the expected return of a portfolio with 12 % in asset J, 51 % in asset K, and 37 % in asset L? d. What is the portfolio's variance and standard deviation using the same asset weights from part (c)? Hint Make sure...
Suppose there are three assets: A, B, and C. Asset A’s expected return and
standard deviation are 1 percent and 1 percent. Asset B has the same expected
return and standard deviation as Asset A. However, the correlation coefficient of
Assets A and B is −0.25. Asset C’s return is independent of the other two assets.
The expected return and standard deviation of Asset C are 0.5 percent and 1
percent.
(a) Find a portfolio of the three assets that...
A portfolio has an expected rate of return of 10% and a standard deviation of 29%. The risk-free rate is 2.50%. An investor has the following utility function: U = E(r) - (1/2)A*Variance. Which value of A makes this investor indifferent between the risky portfolio and the risk-free asset?
Expected return and standard deviation. Use the following information to answer the questions: a. What is the expected return of each asset? b. What is the variance of each asset? c. What is the standard deviation of each asset? Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type a. What is the expected return of asset...
Expected return and standard deviation. Use the following information to answer the questions: a. What is the expected return of each asset? b. What is the variance of each asset? c. What is the standard deviation of each asset? Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases parenthesis after each answer box, only apply for the answers you will type. a. What is the expected return of asset A?...